Podcast ad spend will exceed $2 billion by 2023

Written By

Liz Iversen

Published On

Thursday, Apr 29
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Analysts at eMarketer predict podcast ad spending will to reach $1.33 billion this year and exceed $2 billion by 2023. EMarketer previously expected 10.4% growth in podcast ad spending in 2020, but actual growth reached 36.8%. EMarketer predicts podcast growth to reach 38.7% in 2021 and 31.1% in 2022.

“Podcast advertising in H2 2020 recovered faster than anticipated, audience numbers continued to climb, and digital audio is now a staple in many people’s media diets,” wrote analyst Mariel Soto Reyes in a blog post. “Podcasting has also benefited from companies like Spotify, Amazon, iHeartMedia, and others buying and publicizing content studios and ad tech companies alike.”

There is a divide in podcasting between platforms focused on building large content libraries and those focused on attracting subscribers. According to Conal Byrne, president of the iHeartPodcast Network at iHeartMedia, “There are really two industries underneath this one. There’s the audience industry and the subscription industry. The subscription industry, Luminary, Spotify, etc., is using podcasts as a lead generator to get you to buy something else that’s not a podcast. The audience industry is a very simple business model: Every single thing we make, we will distribute everywhere.”

Need help navigating the exploding podcast industry? To get your brand’s message on podcasts this record-breaking year, contact SMI today.

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